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| Sunday, 19 May 2002 |
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Business |  |
| News Business Features Editorial
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SLECIC to the rescue The Sri Lanka Export Credit Insurance Corporation (SLECIC) honoured a claim to a well-known local manufacturer and exporter of floor tiles recently when it was defaulted by a buyer. A South African buyer of this tile manufacturer had failed to pay for a consignment of floor tiles. The parties had been doing business with each other for many years and the buyer had not defaulted before. However, the exporter had insured both existent political and commercial risks with SLECIC. Therefore, when this long-standing buyer defaulted, the exporter turned to SLECIC under the policy. SLECIC had honoured its commitment and paid 80 per cent of the gross invoice value to the local company. This claim was routed through the Bank of Ceylon. S. H. Anandagoda, Chief Manager (Export Division Corporate Branch), accepting the cheque said that exporting on credit terms to any buyer is risky as there is no guarantee from a bank as in the case of a Letter of Credit. However, an exporter who is covered by SLECIC stands to gain when non-payment occurs, she said. |
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| Editorial | Security Produced by Lake House |
